Sharing is saving: GM to save up to $750 million on Zeta RWD platform

[1931Chevy]

Source: AutoWeek

The new buzzword in Detroit is "common" -- as in common components or common architectures. That's the foundation for everything GM is doing right now, and the Zeta RWD platform is the newest poster child.Engineered in Australia for global use, the Holden VE Commodore was the first Zeta vehicle, and the '08 Pontiac G8 (a rebadged Commodore) is next in line.

Beginning in 2009 and beyond, we'll see Zeta appear under the new Camaro and the next Impala. The architecture is special because it can be used for anything from a ponycar to a station wagon and everything in between.

GM is estimating global units of Zeta at between 500,000 and 750,000 annually. When compared with a different-chassis-for-different-regions approach, the savings generated will be between $500 and $1000 per vehicle. These savings, which can range between $250 million and $750 million annually, result from engineering efficiencies, materials cost savings, plant tooling, and vendor tooling.

Japanese automakers have leveraged common resources for a long time now, which in turn has helped contribute to their cost advantages over the domestics. With a RWD platform that works anywhere on the globe, GM is finally starting to show that they're as serious about 'common' as the competition.

http://www.autoblog.com/2007/02/21/s...n-zeta-rwd-pl/

[FStephenMasek]

As a business school student ('77 to '80), I was amazed that the auto makers were not doing more of this. Even when they were profitable, it would have been better to be more profitable, and service and maintenance of the vehicles would have been less expensive for the buyers. At least they are finally doing it.

[Ming]

The architecture is special because it can be used for anything from a ponycar to a station wagon and everything in between.

Special, but the approach is not unique. I have to assume that the "special" Zeta architecture style, that is nothing new for Holden, arose from having a country with a relatively small population (under 20 million), a limited R&D budget to work with, and only a couple of factories (unsure of how many) for producing cars.

That's why you see Commodore-based wagons, pickups (utes), coupes, extended luxury cars, and probably something else I've left out. Rather than have a production line with small commercial-style pickups, just have a car-based pickup like the One-Tonner (below). Looks a bit bizarre, but gets the job done. Rather than have 5 factories making 5 different cars, make the factories flexible and / or share components and the platform across vehciles in the lineup.

With parent GM now working hard to save money, cut spending where possible and go "global" - Holden's approach makes a lot of sense. A lot more sense than having some dedicated single model factory off somewhere making an SUV, truck or car that loses its popularity --- and then you have to find a way to get rid of the inflexible factory and shuffle around the out of work Union workers.

I do worry that absorbing Chrysler will, at least in the short term, set GM back several years in this regard, especially when it comes to the global GM approach. The temptation will probably be to use reskinned Chrysler models to fill in product holes or replace Chevy rebadges at Pontiac and Buick. That would mean a retrenching of the Detroit-go-it-alone U.S. market focus, and let the subsidiaries fend for themselves in the Global GM. That would be terrible, in my opinion, and would be very short sighted as the Chrysler products and platforms age ungracefully.

[spaz]

if zeta makes so much ense then the G-body cars (lucerne and DTS) will probably move to zeta, which makes me question the future of the hamtramck plant

[joey]

I don't know what the big deal is. The G8 is just a Holden rebadge. The GTO was was the same thing. Holden has wagon versions already. Bring those over too. GM would fine by just bringing over more of Opel's line with the hot engines they have in Europe. The Dawoo's are just cheap Korean junk. Leave the low end to Kia and focus on the middle and high end markets.

[VCDJ]

Originally Posted by joey

I don't know what the big deal is. The G8 is just a Holden rebadge. The GTO was was the same thing. Holden has wagon versions already. Bring those over too. GM would fine by just bringing over more of Opel's line with the hot engines they have in Europe. The Dawoo's are just cheap Korean junk. Leave the low end to Kia and focus on the middle and high end markets.

I agree. Look at opel astra it has 17 engine choices. What does gm do. Well they give us satrun astra with one engine. Why cant they bring some of those diesle engines that opel astra is using. They get 70 mpg. Just think about what king of headlines gm would make. 70mpg saturn. GM still has a lot of work to do.

[regfootball]

this is good PR< even if everything in the article is a no-brainer.

[63GrandSport001]

Originally Posted by joey

I don't know what the big deal is. The G8 is just a Holden rebadge. The GTO was was the same thing. Holden has wagon versions already. Bring those over too. GM would fine by just bringing over more of Opel's line with the hot engines they have in Europe. The Dawoo's are just cheap Korean junk. Leave the low end to Kia and focus on the middle and high end markets.

The big deal is while the GTO and the G8 are only badge jobs the Camaro, Impala and pretty much all of the other Zetas coming out in 2009 will be completely unique on the outside and inside. They will also be produced in NA which is where most of the Zeta volume will likely come from with the Camaro and the Impala alone. In other words the vehicles will have nothing in common except the chassis and drive train bits. They just dont have the ability to bring us these vehicles yet because the plant in NA is not ready yet.

So we can get the unique vehicles that we want and GM can get the kinda savings that they ussually get with rebadge jobs. Thats an extra $500 to $1,000 per vehicle in profit which can go to added content (better interiors, better engines, more standard features) or a lower price or just pure profit.

[johnny smallblock]

Originally Posted by joey

The Dawoo's are just cheap Korean junk. Leave the low end to Kia and focus on the middle and high end markets.

Mmm, well thought out response. That's probably explains why the "Korean junk" has seen its sales increase non-stop since GM bought it. Also explains why that "junk" is being sold around the world under other GM nameplates with more success then those brands had selling their own cars.

[VCDJ]

Originally Posted by johnny smallblock

Mmm, well thought out response. That's probably explains why the "Korean junk" has seen its sales increase non-stop since GM bought it. Also explains why that "junk" is being sold around the world under other GM nameplates with more success then those brands had selling their own cars.

What would you rather have. Oplel Corsa or Chevy Aveo? Everybody here will take corsa over aveo. So aveo is cheap Korean car.

[Ming]

Originally Posted by VCDJ

What would you rather have. Oplel Corsa or Chevy Aveo? Everybody here will take corsa over aveo. So aveo is cheap Korean car.

KIA, Hyundai, and even Suzuki offering GMDAT product and succeeding in gaining market share in the US contradict your statements.

GM will be facing low cost competition from India and China in the years ahead.

They can choose to bury their heads in the sand and hope the competition goes away, or invest in GM Daewoo and sell those cars here to the people who clearly want them at the low end. Brands like Chevrolet are positioned as "value" brands, not upscale or even midpack unless its a car like the Corvette or Suburban. Years and years of selling sharply discounted Cavaliers and ancient S-10's, S-10 Blazers and Astros saw to that.

GM doesn't need to take Chevy upscale like it is doing with Saturn. Chevy globally is selling GMDAT product, so they should do so here at the low end as well, IMO.

From what I've seen, the Opel Corsa would be too overpriced to compete with the "Korean Junk" that many US consumers like to buy because it is value-packed. It would be attractive as a Saturn, perhaps, but not for the value-shopper. More for an upscale compact buyer. Unless it comes as a complete stripper model, with half of the amenities like heated side mirrors that an Aveo offers standard and hand crank windows. And then it would just be Euro Junk for an uncompetitive price. Or we could go back to the 1990's and offer some South American Corsa model as a Chevy, but wow those things lack style...at least the Daewoos try to stay relevant in their styling:

http://www.chevrolet.com.ar/content_...c/sr_corsa.htm

VS.

http://www.gmdaewoo.co.kr/kor/index.jsp

[zete]

The savings from the other platforms, such as Epsilon & Delta, should be enormous. I'm still amazed it took GM this long to do this.

And, when you realize the savings they get from platform sharing you can see why they're eyeing Chrysler. The more they build on a platform the more they save and the more profit they can make.

Of course, it helps that the platforms are so flexible so the cars won't look identical.

[guitarlix]

"Sharing is saving"

It's nice to see GM finally getting with the program........even if they are a couple of decades late.

[HEVguy]

(1) I am very glad they are doing this platform sharing with the mid/full size RWD car segment across the globe.

(2) My question is, whether they were blowing smoke up our a$$ when a couple years ago they said Zeta was too expensive and they weren't going to use it in NA. Not that I mind, they have to try to throw competition off as to their actual plans, etc., but they did come back to Zeta, as originally planned!

[mr_bots]

Wasn't this the original (missed) target for Epsilon? A Truly global platform that underpins hundreds of thousands of cars with any factory tooled for the platform able to produce any car on the platform. They're supposed to finally get it right with EII, and if so wouldn't this provide quite a bit more savings than Zeta as EII will have a lot higher volume with the supposed future models that are supposed to be on it? What volume worldwide will it, Theta, and Delta have and the savings of each?